How Revenue is Spent at the Academy of Nutrition and Dietetics (AND)

The Academy of Nutrition and Dietetics is a non-profit, tax-exempt 501 (c) (6) – a professional organization – that represents more than 100,000 credentialed food and nutrition professionals. Although the organization formerly known as the American Dietetic Association until 2012 when the name was changed to the Academy of Nutrition and Dietetics, has been around since 1917, the Academy of Nutrition and Dietetics Foundation (a 501 (c) (3)) has only been around since 1966. The focus of this post is on how revenue is spent at the Academy of Nutrition and Dietetics (AND).

The IRS Form 990 (2017 for the year ending May 31, 2018) reports the following key information:

Revenue

Total revenue was $39 million (up form $37 million the prior year) most of which came from six sources:

• $11 million (28% of revenue):  Membership Dues
• $10 million (26% of revenue):  Programs and Meetings
• $ 9 million (23% of revenue):  Registration and Exam Fees
• $ 5 million (13% of revenue):  Publications and Subscriptions
• $ 2 million (5% of revenue):  Contributions, Gifts, and Grants
• $ 2 million 5% of revenue):  Investment Income and Gains

As illustrated above, membership dues are the largest source of revenue with programs/meetings and registration/ examination fees right behind. Collectively, these three sources provided 77% of the revenue in the 2017-2018 year.

Annual membership dues range from $35 for a student to $195 for an Associate.  The Form 990 states there are 73,000 members which means average membership dues paid were $150 (but active members paid $150 and students paid $35).

Expenses

$39 million in expenses were categorized as follows:

• $16 million (41% of revenue):  Compensation
• $ 7 million (18% of revenue):  Travel and Conferences
• $ 5 million (13% of revenue):  Other Expenses
• $ 4 million (10% of revenue):  Fees for Services
• $ 3 million (8% of revenue):  Office-Related Expenses
• $ 3 million (8% of revenue):  Publications, Postage and Handling
• $ 1 million (2% of revenue):  Grants

Compensation is the largest expense for AND. 195 employees were compensated $16 million, which equates to an average compensation of $82,000.  28 employees received more than $100,000 in compensation. The highest compensated employee was the CEO, Patricia Babjack who received $579,357.

Other Expenses were primarily ‘other expenses” ($2.8 million) with no detail provided and depreciation ($1.7 million). Fees for Services were primarily “other expenses” ($3.7 million) with no detail provided.

Grants were to the Academy of Nutrition and Dietetics Foundation for general support and scholarship program.

Using the above information, every $100 in revenue was spent as follows:

$100:  Revenue

-$ 41:  Compensation

-$ 18:  Travel and Conferences

-$ 13:  Other Expenses

-$ 10:  Fees for Services

-$  8:  Office-Related Expenses

-$  8:  Publications, Postage and Handling

-$  2:  Grants

-$100: Total Expenses

$41 out of every $100 in revenue was spent on compensating the employees of the organization while $18 out of very $100 was spent on travel and conferences. The remaining $41 was spent on fees for services, office-related expenses, publications, postage, and other expenses.

So, if you paid $150 (the Active member dues) to AND, the $150 was spent as follows:

$150:  Paid to AND

-$ 62: Compensation

-$ 27:  Traveling and Conferences

-$ 19:  Other Expenses

-$ 15:  Fees for Services

-$ 12:  Office-related Expenses

-$ 12:  Publications, Postage and Handling

-$  3:  Grants

-$150:  Total Expenses

Net Assets (Endowment)

At the beginning of the year, AND had nearly $20 million in net assets. Even though the organization raised $39 million and spent $39 million, the net fund balance increased to $21 million – because of an unrealized gain on investments.

To read the IRS Form 990 (2017 for the year ending May 31, 2018), click here.